The Australian Hydrogen Council (AHC) applauds the Australian Government’s bold vision for Australia’s H₂ industry outlined in the Federal Budget. The Government announced significant new measures to support H₂ production, technology development and skills. Topline budget measures:

• $2 B expansion to the H₂ Headstart program
• $6.7 B over 10 years for a H₂ Production Tax Incentive for renewable H₂ produced from 2027
• $1.7 B for a new Future Made in Australia Innovation Fund to support innovation, commercialization, pilot and demonstration projects and early-stage development in priority sectors, including renewable H₂, green metals, low-carbon liquid fuels and clean energy technology manufacturing.
• $1.9 B to recharge ARENA’s core mission developing, commercializing, manufacturing and deploying new renewable energy technologies.

CEO of the Australian Hydrogen Council Dr Fiona Simon said, “The Australian Hydrogen Council is delighted to see this Federal Budget deliver the significant investment required to match the ambition and opportunity of the Australian H₂ industry, manufacturing industry and our trading partners.

“H₂ delivers comparative advantage to Australia not only as a molecule but as the critical pathway to decarbonize hard to abate sectors, and establish new high value exports in green steel, green iron and green ammonia. This budget reflects that production, technology and jobs are all essential parts of ensuring a future made in Australia for H₂.

“The $2 B extension of the H₂ Headstart program is critical for early mover H₂ projects and the $6.7 B H₂ Production Tax Incentive over the next decade for renewable H₂ produced from 2027 will also help give these early projects certainty as they reach financial investment decisions.

“We look forward to working with the Federal Government, Net Zero Economy Authority, Australian Renewable Energy Agency and other agencies as the Future Made in Australia policy progresses and other budget initiatives are rolled-out to industry.”

Other budget announcements:

• $17.1 MM over four years to deliver the 2024 National Hydrogen Strategy including hydrogen infrastructure planning, social license and industry safety training and regulation.
• $32.2 MM to fast track the initial phase of the Guarantee of Origin scheme focused on renewable hydrogen, then expansion to green metals and low carbon liquid fuels.
• $20.9 MM over four years for further consultation on incentives to support production. and demand for low carbon liquid fuels including developing a Guarantee of Origin scheme.
• $44 MM on an Energy Industry Jobs Plan to assist employees impacted by the closure of relevant coal-and gas-fired power stations.
• $134.2 MM for skills and employment support for regions impacted by energy transition.
• $55.6 MM for Building Women’s Careers Program to support women to access flexible training in clean energy, construction, tech and advanced manufacturing.
• $91 MM to develop the clean energy workforce and bolstering VET teacher, trainer and assessor workforce, and funding clean energy training facility upgrades and expansion.
• $399.1 MM to establish the Net Zero Economy Authority to support the economy-wide net zero transformation for private and public investment, major project development, employment transition, skills and community development.
• $505.9 MM, plus up to $2 B in loans, equity and insurance for Southeast Asia Economic Strategy to 2040 to catalyze Australian trade and investment in the region
• $18.1 MM over six years for foundational initiatives to expedite the emergence of Australia’s green metals industry and consultation on incentives to support the production of green iron, steel, alumina and aluminum.
• $48 MM for continued reform of the Australian Carbon Credit Unit (ACCU) Scheme and improving job opportunities and First Nations participation.